CBN’s Daily Cash Withdrawal Restriction Begins Today

The policy on restriction on daily cash withdrawal of the new naira notes takes off today, Monday, January 9, Investors King can authoritatively report.

This is one of the latest policies of the Central Bank of Nigeria (CBN) following the launching of the new naira notes on November 23, 2022 by President Muhammadu Buhari.

CBN, in a letter issued on December 6, last year and signed by its Director of Banking Supervision, Haruna Mustapha, reviewed limits of cash withdrawals by bank customers.

The Central Bank had earlier declared that the limits for over-the-counter weekly cash withdrawals for individuals and corporate entities are N100,000 and N500,000 respectively.

But, in the letter entitled: “Letter to All Deposit Money Banks (DMBS) and Other Financial Institutions (Payment Service Banks (PSBs), Primary Mortgage Banks (PMBs) and Microfinance Banks (MFBs),” the CBN said, “the maximum cash over the counter (OTC) by individuals and corporate organisations per week shall henceforth be N100,000 and N500,000 respectively.”

The apex bank also capped third-party cheque payments for all over-the-counter transactions at N50,000 while the existing limit on cheques of N10,000,000 remains.

On withdrawal from the Automated Teller Machines (ATMs), CBN stated that only N100,000 can be withdrawn in a week subject to a minimum of N20,000 cash withdrawal per day.

For individuals or organisations that have a convincing need to withdraw above the newly approved limits to carryout out lawful businesses, such people or organisations will pay a processing fee of 3% and 5%, respectively.

Other requirements slated for those in compelling circumstances to meet included valid means of identification of the payee (National ID, International Passport, or Driver’s License); Bank Verification Number (BVN) of the payee; Tax Identification Number (TIN) of both the payee and the payer; Approval in writing by the MD/CEO of the financial institution authorising the withdrawal.

As the latest policy on cash withdrawal kicks off today, CBN has said those aiding and abetting the circumvention of the new policy would be subjected to severe sanctions.